Protect Yourself: Beware of Vanilla Gift Card Scams in San Francisco As the holiday shopping season ramps up, so does the risk of falling victim to scams. San Francisco residents are being warned about Vanilla gift card scams, prompting City Attorney David Chiu to take action with a lawsuit against the maker of Vanilla gift cards. The lawsuit focuses on the “insecure cardboard packaging” of the cards, which makes them vulnerable to tampering. Chiu cautions residents about a scam known as “card draining.” Scammers take a gift card off the shelf, manipulate the card, and record its information. They then put the tampered card back on the shelf. Unsuspecting customers purchase the gift card and load money onto it. Meanwhile, the scammer tracks the activation of the card and uses its value for themselves. One key aspect of Vanilla gift cards is that they can be used at any establishment that accepts Visa and/or Mastercard. According to a press release, U.S. consumers load over half a trillion dollars per year onto prepaid debit and gift cards. This widespread use makes it even more crucial to be aware of potential scams. The Better Business Bureau’s ScamTracker warns about websites that claim to check gift card balances but are actually designed to steal money from the card. These websites typically ask for the card’s ID number and PIN or security code. To avoid falling prey to such scams, the U.S. Federal Trade Commission (FTC) advises inspecting the card before purchase and ensuring that no protective stickers or scratch-off codes have been tampered with. In the lawsuit filed by City Attorney David Chiu, the parent company Incomm Financial Services, Inc. and its partner banks are named as defendants. Chiu accuses Incomm of negligence, which has allowed scammers to defraud thousands of consumers. Furthermore, the company allegedly refuses to refund consumers who have been scammed as a result of Vanilla gift card draining, a violation of state law. Chiu hopes to raise awareness, compel Incomm to implement industry-standard security features to prevent card draining, and secure restitution for affected consumers. As the holiday season kicks off, it is crucial to remain vigilant and protect yourself from scams. Be cautious when purchasing gift cards and ensure that they have not been tampered with. By staying informed and following the recommended precautions, you can avoid falling victim to Vanilla gift card scams and enjoy a safer shopping experience.